The construction conglomerate, whose other businesses include JF Finnegan and Gee Construction, said Browns lost £395,535 after tax for the year to September 2007.
The Cheshire-based group, which was established in 1860, posted a £2.1 million loss two years ago before returning to profitability in 2006.
Headcrown chairman Carl Brian said: “The business [Browns] has a number of formal disputes dating back a number of years and these are now all coming to a conclusion.”
Group pre-tax profits fell 14.5 per cent to £11.8 million after lower profits at JF Finnegan, which came in at £8.5 million, and Cruden, where profits ended up at £1.7 million.
Gee Construction was the only division to record profits growth, the £2 million pre-tax figure up 19 per cent on last time.